When a New Personal Computer Is Purchased to Replace an Old

question 51

Multiple Choice

When a new personal computer is purchased to replace an old one,and the new PC is much better and faster than the old one,there has been

• A)a disembodied technical change.
• B)a rise in the capital-output ratio.
• C)a fall in the output per unit of capital.
• D)an embodied technical change.
• E)capital "deepening."

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Definitions:

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Title Conveyance

The legal process of transferring ownership of property from one party to another.

Journal Entry

A record in accounting that logs a transaction and its impact on financial statements, consisting of a debit and a credit.